Airline ticket sales dropped from September to October, when they typically rise ahead of the holiday season, said FlightHub travel agency CEO
"There is a bit of anxiety around ticket prices. There is a bit of anxiety around the overall economy, interest rates and so on. So we have to anticipate the potential softening of the travel market over the next 12 months," Cave said in a phone interview.
Sales at
However,
The travel sector came roaring back this year, with seat capacity among big Canadian carriers at 92 per cent of 2019 levels, according to figures from aviation data firm Cirium. But
There's also "too much capacity" in some markets, including sun destinations and major routes between big cities, said TD Cowen analyst
She said bookings are up for American
Experts cited slimmer disposable income amid increased costs on everything from rent and mortgages to food, gas and student loans.
"Commercial aviation is one of the first industries to feel the chill of a downturn," said aviation consultant
Meanwhile, the flexibility allowed by at-home or hybrid work during the COVID-19 pandemic and its immediate aftermath has partly fallen away.
"Four is the new three," Becker said, referring to the number of days many workers are expected in office, "and schools are back in session full time. It is not easy to get away for long weekends anymore."
For airlines, higher wages, fuel prices and interest rates are weighing on the bottom line.
"The fixed costs are there, but the revenue is not," she said.
The potential plateau in parts of the sector comes despite lower fares on flights within
The cost of a round-trip domestic plane ticket booked in September fell to
In October, Canadian flight fares for the Antilles sank 19 per cent year over year and 16 per cent for
The decrease is partly the result of stiffening competition in the domestic and sun destination markets, as
"
But the fare incentive may not be enough to rouse more passengers from the couch — or office chair — to the plane seat in coming months.
"Last year, they're flying to see family members for Christmas or
This report by The Canadian Press was first published
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